Hongkong Land - More Involvement In China Development Properties & Investment Properties
- Hongkong Land (SGX:H78) reported flattish underlying profit in FY21 with flattish DPS. Base rent reversions in Hongkong investment properties (IP) will likely remain negative with rent relief in FY22F.
- Hongkong Land expects more China development properties (DP) booking with increased unbooked DP sales; it will complete 1.1m sq m of China IP through FY26F to strengthen its IP revenue.
- Reiterate ADD call on Hongkong Land. We cut FY22F/23F earnings per share (EPS) forecast for Hongkong Land by 5%/6% due to the new round of retail rent relief and slower recovery of office rents in Hongkong and Singapore. Our target price for Hongkong Land is lowered to US$6.1, still based on a 40% discount to NAV, as we also trim its NAV/share by 3% to US$10.2.
- Hongkong Land's ongoing share buyback provides support to share price and potentially improves FY22F EPS by another 2%.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
Raymond CHENG CFA CGS-CIMB Research | Will CHU CFA CGS-CIMB Research | Steven MAK CGS-CIMB Research | https://www.cgs-cimb.com 2022-03-05 2022-03-05
Read also CGS-CIMB's most recent report:
2022-07-29 Hongkong Land - Upsized Buybacks In Earnings Dip.